A possible increase in fuel prices due to the US sanctions on Iranian crude exports can have adverse impacts on the current account deficit (CAD), the rupee and inflation, according a Care Ratings report.

A 10 per cent spike in crude prices can result in a 0.40 per cent widening of the CAD, which can consequently play out into a 3-4 per cent depreciation in the rupee and also push up inflation by 0.24 per cent, the ratings agency has said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, edged lower by 0.15 per cent to 98.02.

Meanwhile, equity benchmark BSE Sensex was trading 42.83 points or 0.11 per cent higher at 39,097.51, and the NSE Nifty rose 22.95 points or 0.20 per cent to 11,749.10.

Foreign institutional investors emerged as net buyers in the capital markets, putting in Rs 974.88 crore Wednesday, according to the provisional data.